I recently bought and listened to this audio book from the great, and sadly late, Jim Rohn.
I want to share with you what I learnt from his wisdom about getting wealthy because it is so easy you will kick yourself if you are not already doing it.
I want to share with you what I learnt from his wisdom about getting wealthy because it is so easy you will kick yourself if you are not already doing it.
Okay let me dive straight in, nothing worse than someone waffling on, right?
Jim says that "the poor spend all of their earnings first and then save what's left over" compared to "the rich who invest all of their money first and then spend what's left over".
Think about that...... which one of those have you been doing? Be honest!
Think about that...... which one of those have you been doing? Be honest!
Jim says that you should aim to (at least) spend only 70% of your net income and invest the remaining 30%.
This is all actually rather simple, right? Are you with me? No, okay, let me dig into this a bit more for you.
For a random example, let's say that after taxes you bring home 1,000 a week. You should be only spending a maximum of 700 and investing at least 300 out of that money.
You say it cannot be done? Okay well, in some cases, yes, it will be hard - BUT - in every case there is something you can do to start to adapt this method of growing your wealth. For example, I know people who say they have no money left over at the end of the pay week. However, on closer look, they have a Movie subscription of roughly 8.99 a month, they went out to eat for 78.99 last week to celebrate a birthday, they bought snacks that made them unhealthy and cost 9.99..... It is very unusual not to be able to find some part of your spending you can improve on.
In my post a while back, called, "How to cope with rising prices", I mentioned the power of using a spreadsheet to track your income versus your outgoings. I cannot overemphasise how important it is for you to do this. Why? Because, if any of you are screaming at me through this screen, saying "YOU DON'T UNDERSTAND, MY FAMILY IS ON THE FOOD BANK, WE WATCH EVERY PENNY AND CANNOT INVEST 30% OF OUR NET INCOME", this spreadsheet will at least allow you to keep monitoring your finances, until YOU DO GET SOME EXTRA MONEY. By looking every day at your spreadsheet you will develop such a fine tuned knowledge of your finances, you will find you start to know exactly when extra money is coming to you, perhaps through a new job, or some tax benefits, or something else.
Ultimately, my blog is about giving you some ideas to push you towards an improved situation where you "will" thrive. However, it is important to make this clear, I can push you out on the boat of wisdom, pushing you towards a better destination, but unless you are willing to row, that metaphorical boat is going to drift.
So please understand that growing wealth is possible, having a plan helps, and having a spreadsheet that manages your finances will also steer you to get to where you want to be.
So please understand that growing wealth is possible, having a plan helps, and having a spreadsheet that manages your finances will also steer you to get to where you want to be.
As always, take care today.
Author: Christian Jacques Bennett*
Socially Discuss - or add a comment below
Search Terms: Jim Rohn, Tony Robins, Self Help, Self Improvement, Self Development, Rich, Wealth, Pension, Early Retirement, Coach, Mentor, Change.
